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"The debt over 25 years at 5.5% interest your monthly mortgage costs would be..."

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To figure out how much house you can afford you should multiply your annual salary by a factor of 3. In your case 95000 should be able to allow you buy a home that costs $285,000. Let`s work out some numbers according to today`s market conditions and see if you can really afford that home. Let`s assume you make a 10% down payment of 28,500 you will still need to finance 256,500. If you amortize the debt over 25 years at 5.5% interest your monthly mortgage costs would be $1565. Property taxes can be from .5% to 2% of your house price per year which in this case would be $5700 a year or $475 a month if you were assessed at full value and highest tax rate. Add in PMI and home owners insurance of $200 or so each month and your total housing bill per month is 1565 plus 475 plus 200 for a total of $2240. Banks calculate what is called a front end ratio to calculate how much money they can safely lend you. Your total housing costs must be less than 28% of your gross income. Your monthly salary is $7917 of which 28% is $2217. So our example financing would put you slightly over the allowable 28%. Beef up your down payment or choose a house with less principal to make the numbers work. Also, you may have a cheaper property assessment or tax rate which would have made our example work. Here are the mortgage terms for our example home: Mortgage Amount:
$256,500.00
Interest Rate Type:
Fixed
Payment Amount:
$1,565.66
Amortization Period:
25 years 0 months
Payment Frequency:
Monthly
Interest Term:
25 years 0 months
Interest Rate:
5.500%.

"You amortize over 25 years at 5% interest you can borrow $100,000 for monthly..."

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A rough rule of thumb is the cost of your home should be about 3 times your annual income. If you want to get more formal, banks use a 28% front end ratio to determine how much mortgage you can borrow. No more than 28% of your gross income should be taken up by housing costs (including PMI, home owners insurance, property taxes .5 - 2% per year and your mortgage costs). Using our first rule you should be looking at buying a home that is about $105,000 to be 3x your salary. Using the second set of rules from the bank, you are making about $3000 a month in gross salary. 28% of 3000 is $840 per month you can spend on your housing costs. Therefore we are looking for a mortgage of about $600 a month. If you amortize over 25 years at 5% interest you can borrow $100,000 for monthly mortgage cost of $581.61, right in our acceptable range. With a 10% down payment you can get a home of about $111,000 making an 11K down payment. If you make a larger down payment or get a better interest rate you could finance a larger home.

"Our range (assuming 25 years and 5.5% interest rate..."

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If you salary is 110,000 per year this works out to about $9167 in gross income monthly. If you were to ask a bank to borrow money they would use the criteria that no more than 28% of your gross pay can go to paying down your housing costs including mortgage, taxes and insurance. 28% of $9167 works out to $2567 a month for housing. We want a mortgage in the neighborhood of 1800 - 1900 to leave enough room for property taxes and insurance while still adhering to the 28% rule. If you borrow 300,000 your monthly mortgage payment would be $1,831.18 which is right in our range (assuming 25 years and 5.5% interest rate). If you save a 10% down payment you can get a 333,000 home with a 33,000 down payment. If you factor in property taxes (.5% to 2% typically, adding $6660 a year at the high end or $555 a month ) and PMI with home owners insurance which is about $200. 755 plus 1831 is $2588 in housing costs per month about 20 dollars too high. If property taxes were slightly lower or we had a better interest rate you would be comfortably under the magic number. Having said that, if you want to make your life easier consider getting a house in the $275,000 range and save a big down payment. You will own more equity right away and make your monthly housing costs much more affordable.

"If you are bent on buying a home normally you don`t want..."

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With interest rates so low it`s a better time to be paying off debt rather than accumulating it. Having said that, if you are bent on buying a home normally you don`t want to buy something that is more than 3.5 times your combined family income before taxes. So, making $45,000 you could comfortably afford a home that costs around $157,500 assuming your wife does not work. If you make a 10% down payment you would be looking for a loan that is $141,700. I wouldn`t borrow more than that even at today`s low interest rates. You need some insulation for when rates do rise again as they must. They won`t stay this low forever. Be careful though, low rates can help fuel housing bubbles so look at the long term price trends for real estate in your area before listening to a real estate agent or mortgage banker when they say "it`s a good time to buy".

"Making a down payment of 10% means you need to..."

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With 95,000 in annual salary you can afford a house that costs about 285,000 per year. Working out the numbers, assuming you make a 10% down payment and amortize over 25 years at 5%. Making a down payment of 10% means you need to borrow $256,500 which would make your monthly mortgage cost $1,491.82. Insurance will run about $200 a month and property taxes 1400 - 7200 depending on where you live. Taking the low end is about $120 a month. 1491 plus 200 plus 120 is $1810 per month in housing costs. Let`s make sure you can afford it the way the bank calculates it. 28% is the maximum of your gross pay that you can use to service your housing costs. At 95K per year you are making $7916 per month, with 28% equal to $2216. Our example comes in under that with some breathing room meaning you can borrow a little more if you wanted to.

"With interest rates so low you may want..."

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With interest rates so low you may want to try 3.5 times your annual income and see if you can afford that which works out to a $332,500 house. Making a 10% deposit leaves 299250 to finance. If you finance over 25 years at 5.5% your monthly mortgage costs would be $2,029.56. With property taxes and insurance you would be over 28% in this case. So you would have to find a better interest rate than 5.5% or make a bigger down payment to afford this home at 3.5 times your salary. Looks like a nice range for you is 275,000 - 325,000 making a 10% or more down payment so long as you can get 5 - 6% interest rates and a 25 year financing term.

"Make sure you are armed with a good trading strategy for you to be..."

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You will be able to find comprehensive answers to most of your forex questions plus a free trading strategy which you can start using right away from http://www.kenyaforexanswers.com/ Make sure you are armed with a good trading strategy for you to be able to make profits out of the forex market.

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How much house do i qualify if i make 110000 salary?

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If you make over 110000 per year how much wil you get apporoved for home loan?

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I make 110000 dollars ayear how much house can i afford?

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